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Honda Will Now Invest In Eco-Friendly Car
May 03, 2007

Honda plans to invest a sum of 70 Billion Yen in new plants in its home country, as the company focuses on strengthening the R&D of environment friendly vehicles.

Honda plans to invest a sum of 70 Billion Yen in new plants in its home country, as the company focuses on strengthening the R&D of eco-friendly vehicles.

Of the 70 Billion Yen in this new investment, about 25 Billion would be invested in the engine plant in Ogawa town in Saitama region neighboring Tokyo. The new plant, which would start operating in year 2009, would have the capacity to produce 200,000 engines per year for fuel-efficient vehicles, said the automaker

Yorii, another car factory in Saitama region, will turn into "a green factory", with 20% reduced CO2 greenhouse gas emissions compared to the level in the year 2000, said Fukui - Honda President. Yorii will be on stream in year 2010 with a capacity of producing 200,000 vehicles per year.

On December 19, 2006, Honda Motor Co. said that it expects the global sales should rise 5% to a record high to reach 3.55 Million vehicles by the end of this year amidst booming demand in overseas markets. Also, the company would put in money in new plants to hot-sell fuel-efficient vehicles.

Honda President said, "There are brisk sales in the entire global market, whereas domestic market size for 4-wheel vehicles & motorcycles has been shrinking as a result of tough market-conditions.

About 40% of global sales of Honda vehicles were in U.S. in year 2006. In Europe, the company expects a sales rise of 13% to reach 350,000 in 2007, representing a rise on 310,000 in year 2006. In Asia (outside Japan), Honda's sales are forecasted to rise 4% to reach 320,000 units this year.

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